@ 2011   Dragon Report (NDS).  All Rights Reserved

Serious Challenges China Faces Currently

China’s Future Is Rather Uncertain

The global economic crisis has changed the perception that many Western countries shared on China. It is no longer viewed as an unruly and disruptive pupil, but rather a potentially financial paymaster.  Hence the aim here is to identify and describe the challenges that China is facing in its new role.  Chinese developments in all three areas are imposing increasing strains on the country’s political system and institutions and demand new approaches both inside and outside the country.  The future for the country is still uncertain due to many vulnerabilities in economic, domestic and foreign policy. 


Economists forecast that China’s GDP is to exceed that of the US within a decade or two.  Although these predictions many get investors excited, it is also worth remembering that they are based on extrapolations of the past. Yet, challenges such as the obsolescence of growth model, the growing pressure of labour costs, and the lack of diversifications lie ahead. These challenges need to be faced by a new government and policy that will balance the fiscal situation and put China back on track for fast economic growth. Besides, domestic policies face the challenge of reapid escalation of social unrest among China’s population.  The increasing number of “mass incidents” across China, the expanding number of people who have access to the Internet and the free exchange of information via “micro-blogs” and tweeting networks, on which 80 million Chinese netizens express their grievances represent a threat to the existing system.  Although the Communist Party still commands big respect among older citizens the level of corruption is alarming and has started to bother younger generations.  And yet, the rulers in China are still a long way from formulating a coherent response to the demands of an increasingly impatient public.  As it the case for its domestic policy, China’s foreign relations are rooted in one fundamental imperative: keeping its regime in power.  The government is ready to do whatever is necessary to maintain rapid growth by keeping export markets open, securing access to energy and natural resources worldwide and preventing the economy from being blown off course by external shock.  Since Beijing has few military allies its international influences is exercised largely though the medium of money and the language of brute force. However, the increasing dependency on the global economy will sooner or later become too important for China to remain on the diplomatic sidelines. 


There is no evidence of any broad-based popular demand for democracy, yet the pressure for change is increasing.  The government’s legitimacy - based on performance - is coming under strain from several directions and these challenges, which are both economic and political, need to be addressed.  However, China’s Communist Party has not yet formulated a clear, effective response strategy.  For the rest of the world, the only realistic option is to continue trying to engage China pragmatically but without conceding on essential principles.

  1.    climate global views

  2.  

China’s Rise & Challenges
Continue to Reform
Environmental & Food Issues

Voices From The Other Sides ...

EventsEvents.html
Dragon ReportDR_Archive.html
Personal BlogBlog.html

Channels

Anti-corruption
Economic Transformation
Social Issues & Income Equality
One Child Policy
Complex & hostile international environment
Unification of China

China 2030: Building a Modern, Harmonious, and Creative High-Income Society is an extensive study of the economy of the People's Republic of China published in 2012 by the World Bank, Washington, D.C., and the Development Research Center of the State Council, People’s Republic of China, Beijing. China 2030 attempts to set forth a possible development path for China that would result in attainment of the status of a "rich country" by 2030. An earlier report "China 2020" was prepared under World Bank auspices in 1998.

Aging Population and the Health Care, Pension Systems
China’s new president Xi Jinping has a heavy burden on his shoulders.

Beijing, China, March 5 - 14, 2013:  2013 NPC/CPPCC “Two Meetings” - Change & Continuity: Setting Expectations.  This paper contains “introduction”, “The Chinese Dream”, “Premier Li Meets the Press”, “What’s New”, “Hot Topics” and “Implications for MNCs”. 

Dragon Report

      Home     |   Translation Service    |    About Us       |      Readings     |      Report Download    |     Contact     |        Donate                                                          

ODI